Applicability of Service Tax Changes

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Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2011 Whether changes made by Finance Act, 2011 in service tax are applicable for May, 2011

BALASUBRAMANYA B N

BALASUBRAMANYA B N

(Expert)
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28 February 2011 No it will not be applicable for may 2011..

Ashok Asthana

Ashok Asthana (Expert)
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01 March 2011 The applicability of changes in service tax will be applicable from the date of passing of Finance bill.

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caferoz

caferoz (Expert)
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01 March 2011 no it is not applicable for May 11

Ashok Asthana

Ashok Asthana (Expert)
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01 March 2011 Mr. Caferoz
How can you say it will not be applicable in May 2011

Ashok Asthana

Ashok Asthana (Expert)
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01 March 2011 Point of Taxation Rules, 2011 have been framed vide notification 18/2011-ST and made effective from 01.04.2011. These rules determine the point in time when the services shall be deemed to be provided. The general rule will be that the time of provision of service will be the earliest of the following dates:
i. Date on which service is provided or to be provided

ii. Date of invoice

iii. Date of payment

6.2 Consequential changes have also been made in the Service Tax Rules, 1994 to alter the payment of service tax from receipt of payment to provision of service and also to permit adjustment of tax when service is not finally provided.

Tags: Point of Taxation Rules 2011

caferoz

caferoz (Expert)
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01 March 2011 The querist meant something else

Ashok Asthana

Ashok Asthana (Expert)
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01 March 2011 I know. But this is an important change and must be brought to the notice. Most of the provisions of service tax changes will be effective 1-3-2011 and rest will be effective 1-4-2011.

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